1. When is the prevailing wage rate used?
2. What is the definition of a public works or related projects?
3. Are there project monetary thresholds?
4. Are any types of projects specifically exempted?
5. What is included in the calculation of wage rates?
6. Who calculates the prevailing wage rates?
7. Enforcement: what are the penalties for violations? Criminal or fines?
8. Can contractors be debarred?
9. Are there posting requirements?
10. Does the agency retain any fines for enforcement (i.e. an enforcement fund)?
11. Record Maintenance?
12. Are there any provisions which discuss apprentices?
When is the prevailing wage rate used?
A) Any firm, individual, partnership, limited liability company, or corporation that is awarded a contract by the state, a political subdivision, or a municipal corporation for the construction of a public work, and any subcontractor of the construction, shall pay for each class of work described in subsection (c)(1) on the project a scale of wages that may not be less than the common construction wage. (IC 5-16-7-1 Common construction wage; committee to determine; classification; exemptions.)
B) Notwithstanding any other law, the provisions of this chapter apply to projects that will be: (1) owned entirely; or(2) leased with an option to purchase;by the state or a political subdivision (as defined in IC 36-1-2-13). (IC 5-16-7-1 Common construction wage; committee to determine; classification; exemptions.)
C) It is important to note that in Indiana, the "Prevailing Wage Law" is now known as the "Common Construction Law." (Indiana Department of Labor)
What is the definition of a public works or related projects?
"Public work" includes any public building, highway, street, alley, bridge, sewer, drain, improvement, or any other work of any nature or character whatsoever which is paid for out of public funds, excepting as otherwise provided in this chapter. (IC 5-16-7-4 Definitions) (Please refer to number 5 "Are any types of projects specifically exempted" for further explanation.)
Are there project monetary thresholds?
Notwithstanding any other law, this chapter does not apply to projects in which the actual construction costs less than one hundred fifty thousand dollars ($150,000). (IC 5-16-7-1 Common construction wage; committee to determine; classification; exemptions.)
Are any types of projects specifically exempted?
A) The provisions of this chapter shall not apply to contracts let by the Indiana department of transportation for the construction of highways, streets, and bridges. IC 8-23-9 applies to state highway projects. (IC 5-16-7-1 Common construction wage; committee to determine; classification; exemptions.)
B) The provisions of this chapter do not apply to public projects in this state that would otherwise be subject to the provisions of this chapter that are to be paid for in whole or in part with funds granted by the federal government, unless the department of the federal government making the grant shall consent in writing that the provisions of this chapter are applicable to the project. (IC 5-16-7-1 Common construction wage; committee to determine; classification; exemptions.)
C) This chapter does not apply to contractors or subcontractors performing public work for Purdue University on agricultural or forestry land owned or occupied by the university and used by it for educational or research purposes if the cost of the work is estimated to be less than fifty thousand dollars ($50,000). (IC 5-16-7-5 Non-applicability of chapter)
D) Except as provided in IC 5-23, this chapter does not apply to a person that has entered into an operating agreement with the state, a municipal corporation, or another political subdivision for the management or operation of a public facility under IC 5-23. (IC 5-16-7-5 Non-applicability of chapter)
What is included in the calculation of wage rates?
Wages are "every form of remuneration payable for a given period to an individual for personal services, including salaries, commissions, vacation pay, dismissal wages, bonuses and reasonable value of board, rent, housing, lodging, payment in kind, tips and any other similar advantage received from the individual's employer or directly with respect to work for him." Thus, in addition to the regular hourly wage for each trade or craft, a common wage committee must include any fringe benefits in the scale of wages if they are commonly paid in the community for that type of work. (Indiana Department of Labor)
Who calculates the prevailing wage rates?
A) For the purpose of ascertaining what the common construction wage is in the county, the awarding governmental agency, before advertising for the contract, shall set up a committee of five (5) persons. (IC 5-16-7-1 Common construction wage; committee to determine; classification; exemptions.)
B) The rate of wages determined under subsection (c) shall not be less than the common construction wage for each of the three (3) classes of wages described in subsection (c) that are currently being paid in the county where the project is located. (IC 5-16-7-1 Common construction wage; committee to determine; classification; exemptions.
Enforcement: what are the penalties for violations? Criminal or fines?
A contractor or subcontractor who knowingly fails to pay the rate of wages determined under this chapter commits a Class B misdemeanor. If the contractor or subcontractor has committed a prior offense under this section, the contract on which the instant offense occurred shall be forfeited and the contractor or subcontractor may not receive any further payment on the contract nor may the state or the municipal corporation making the contract make any further payments on the contract from any of the funds under its charge or control. (IC 5-16-7-3 Violations; penalties)
Can contractors be debarred?
A) Indiana code states that any contractor who falsely submits information to the department will be banned from acquiring a contract for a period of two years. (Indiana Administrative Code)
B) Furthermore, the department has the authority to revoke a contractors bidding abilities if the department believes that the contractor will not be able to finish the project, or has proved to construct unsatisfactory work. The contractor can resume bidding when the department feels that the contractor can meet the standard requirements. (Indiana Administrative Code)
Are there posting requirements?
An Indiana employer is required by Federal Law to post the Davis-Beacon Public Contracts Act. There is no state law requiring prevailing wage postings. (Gilliland & Caudill, Attorneys & Counselors at Law)
Does the agency retain any fines for enforcement (i.e. an enforcement fund)?
There is no information stating how the fines for prevailing wage violations are used.
Record Maintenance?
The state or any municipal corporation thereof letting any such contracts shall require any contractor or subcontractor performing such public work to file a schedule of the wages to be paid to such laborers, workmen, or mechanics thereon with the state or with such municipal corporation. Such schedule shall be filed before any work is performed on such contract or subcontract; provided, such scale shall not be less than the scale determined as provided in section 1 of this chapter; provided further, that nothing in this chapter provided shall prevent such contractor or subcontractor from paying a higher rate of wages than set out in the schedule of wages filed by him. (IC 5-16-7-2 Filing schedule of wages)
Are there any provisions which discuss apprentices?
A common wage committee may provide for an apprenticeship program certified by the U.S. Department of Labor to establish wages for semiskilled and unskilled workers for a particular trade or craft. (Indiana Department of Labor)
References
IC 5-16-7 Chapter 7. Wage Scale of Contractors' and Subcontractors' Employees* This is the Indiana Law pertaining to prevailing wage rates.